Adviser convicted of fraud
The Serious Fraud Office has secured fraud convictions against an Auckland-based investment adviser for about $400,000.
Friday, March 12th 1999, 12:00AM
The Serious Fraud Office has secured fraud convictions against an Auckland-based investment adviser for about $480,000.Arch Williams, who had a business called Financial Information Services, was found guilty, recently, on 13 counts of fraud by a jury in the District Court at Auckland. He will be sentenced on March 25.
The charges Williams was found guilty on related to handling money contrary to instructions.
The Serious Fraud Office says when he started his business he gave clients advice on where to invest their money. Later on though he started handling client money then using it to prop up his business.
The office says he promoted so-called "prime bank instruments" to his clients as a safe international investment that would produce big profits.
Williams' clients did not put money into the instruments, rather Williams tried to operate as a broker buying and selling them. The theory behind these instruments is that the person who sells them can make significant profits.
In the Williams case this did not happen and client money was used to prop up the business. Williams was bankrupted by Telecom over debts of $360,000.
Williams was not a member of the Association of Investment Advisers and Financial Planners (IAFP), however Good Returns understands he had been some time ago, and that he had used the MRIAFP designation.
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